Life insurance and household consumption
By: Jay Hong and José-Victor Ríos-Rull.
Contributors: Ríos-Rull, José-Víctor.
Series: Working paper ;; no. 04-10; Working paper (Federal Reserve Bank of Philadelphia : Online) ;; no. 04-10.
Publisher: Federal Reserve Bank of Philadelphia
Published: 2004
Place of publication: Philadelphia, PA
Language: eng
Format: Electronic resource
Subjects: Insurance, Life; Consumption (Economics)
Description: "In this paper, we use data of life insurance  holdings by age, sex, and marital status to infer how individuals value  consumption in different demographic stages.  Essentially, we use revealed  preference to estimate equivalence scales and altruism simultaneously in the  context of a fully specified model with agents facing U.S.  demographic features  and with access to savings markets and life insurance markets.  Our findings  indicate that individuals are very caring for their dependents, that there are  large economies of scale in consumption, that children are costly but wives  with children produce a lot of goods in the home and that while females seem to  have some form of habits created by marriage, men do not.  These findings  contrast sharply with the standard notions of equivalence scales"--Federal Reserve Bank of Philadelphia web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/25/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.